Under what conditions can Better Blend charge a Non-Compliance Fee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
mployee to BBF's training program after opening, BBF may charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per person per day.
- 4.6 Non-Compliance Fee. BBF may charge Franchisee $500 for each instance of noncompliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to BBF) which Franchisee fails to cure after 30 days' notice. Thereafter, BBF may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of BBF's internal cost of personnel time attributable to addressing the noncompliance, and it is not a penalty or estimate of all d
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend may charge a Non-Compliance Fee under specific circumstances related to a franchisee's failure to adhere to the System Standards or the Franchise Agreement. Better Blend can initially charge $500 for each instance of noncompliance, but this is only applied if the franchisee fails to correct the issue after receiving 30 days' notice.
Thereafter, if the non-compliance continues, Better Blend may charge an additional $250 per week until the franchisee rectifies the situation. The FDD states that this fee is designed to cover Better Blend's internal costs related to addressing the noncompliance and is not considered a penalty or a comprehensive estimate of all potential damages resulting from the franchisee's breach.
It's important to note that the non-compliance fee is in addition to any other rights and remedies Better Blend has, including the possibility of default and termination of the Franchise Agreement. This means that franchisees need to take any notice of non-compliance seriously and address it promptly to avoid accumulating fees and potentially more severe consequences.